In an attempt to gain momentum and show some sign of hope, retailers are offering huge discounts allowing shoppers to get great bargains.  One could only wonder if stocks, exchange traded funds (ETFs) and other securities are mimicking these bargains.

The desperation that has overcome the industry has spread from the average Joe’s Gap Store (GPS) to the luxurious Salvatore Ferragamo.  Retailers and those who watch the industry say that it is noteworthy to see how many sale signs and advertisements for deals can be found at the front of stores on Fifth Avenue, which has been known to be traditionally sacred and immune to a downturn, states Cara Buckley of the New York Times.

Marshal Cohen, chief retail analyst at the NPD Group, indicates that the faltering economy and decrease in tourist volume has really taken its toll on Fifth Avenue retailers. It appears that these stores are focusing their marketing tactics on the “window shoppers” and hoping to lure them in to increase sales volumes.

Perhaps with these tactics, the historical jump in revenues from the holiday season, and the huge drop in oil and gas prices at the pump will help these retailers and the ETFs that track them make up some losses for the year.

  • SPDR S&P Retail (XRT): is down 50.2% for the year

  • Claymore/Robb Report Global Luxury Index (ROB): is down 57.5% for the year.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.